The topic on this episode is the increasing amount of private equity purchasing/partnering of medical practices in the US. We are seeing in in a variety of fields such as radiology, anesthesiology, emergency medicine, dermatology, just to name a few. I wanted to explore why this is happening. This is part 1. Make sure you listen to part 2 also.

My guest on this episode is Kurt Schoppe, MD a radiologist in Dallas, TX. Kurt is part of the American College of Radiology Economics committee and has experience in the private equity world. On this episode we talk about:

What is private equity?

Why would they be interested in medical practices?

Kurt Schoppe, MD

Fragmentation of medical practices leads to market opportunities.

They are good at logistics, operations and can increase efficiencies to improve returns.

They can have access to capital to make discount purchases.

They see healthcare as a more predictable way to make money.

Why would a practice want to sell to these firms?

FOMO (Fear of Missing Out) Other groups have done so we probably should also.

Thinking that your group doesn’t have the expertise to handle a changing healthcare reimbursement model